Pacific Crest Starts World Wrestling Entertainment (WWE) at Overweight

Pacific Crest initiated coverage on World Wrestling Entertainment (NYSE: WWE) with an Overweight rating and a price target of $22. Analyst Evan Wingren said the company is well positioned to navigate the future of TV via its Internet-based direct-to-consumer network.

"To be successful in direct to consumer, we believe a company needs either tremendous content breadth that appeals to all consumers in a household, or to serve a specific audience in tremendous depth, which is how we view WWE Network. WWE appears to be in the early stages of this process and has seen strong subscriber growth to date. We expect it to continue growing and approach 4 million paying subscribers by 2025," said Wingren.

"WWE's content is primarily consumed live by its fans, which is likely to continue to warrant premium value as networks become increasingly reliant on live content. Revenue growth for the next three years is largely locked thanks to contractual agreements, and is not affected by ratings or MVPD subscriber losses, which we view favorably given the secular headwinds in the pay-TV ecosystem," added the analyst.

For an analyst ratings summary and ratings history on World Wrestling Entertainment click here. For more ratings news on World Wrestling Entertainment click here.

Shares of World Wrestling Entertainment closed at $17.89 yesterday.

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